Show download pdf controls
  • SuperStream Benchmarking Report (SRF711.0) quarterly report

    Quarterly report 1 January 2019 – 31 March 2019

    SuperStream’s goal is to enhance the productivity and efficiency of the superannuation system, especially business processes associated with contributions, rollovers and the consolidation of accounts. Industry improvements are intended to lower fees and improved processing flows.

    We measure SuperStream's success by tracking its compliance with:

    • The Superannuation Data and Payment Standards 2012
    • rates of straight through processing
    • reduction in processing cost
    • improved data quality.

    Benchmarking and evaluation of SuperStream

    The ATO, APRA and Treasury consulted with industry in early 2013 to:

    • develop a broad approach to SuperStream benchmarking and evaluation
    • identify which key outcomes have been achieved.

    Wherever possible, these items were sourced from existing collections; in particular:

    • APRA’s regular quarterly and annual reporting forms released on 28 March 2013
    • Super member contributions statement
    • other industry collections such as the ASFA VEDA Core member details benchmark.

    During consultation there were a small number of data items that were not yet collected, which would give insight to the rate of take-up of the standard and direct consequences of its adoption.

    See also:

    The SRF711.0 collection

    The SuperStream benchmarking data is designed to focus on contributions processing by APRA-regulated funds and exempt public sector superannuation schemes (EPSSS). It will be conducted quarterly from the September quarter 2015 until the June quarter 2019.

    SRF711.0 is collected by APRA for use by the ATO. This report contains ATO analysis and interpretation of the data reported on SRF711.0 for the period from 1 January 2019 to 31 March 2019. It includes some reporting entities which have a different financial year end.

    Key concepts

    The data tracks the volume and cost of member contributions sent by employers to APRA-regulated super funds and a small number of other super entities.

    Reporting entities

    Reporting entities include:

    • APRA-regulated superannuation entities (RSEs) with more than four members (except as noted below)
    • a number of EPSSS that report to APRA under a heads of government agreement between the Commonwealth and each of the state and territory governments.

    SRF711.0 is not reported by eligible rollover funds, pooled superannuation trusts or single member approved deposit funds.

    Employers

    Employers are required under the Superannuation Guarantee (Administration) Act 1992 to send contributions on behalf of their employees quarterly. Some super funds require employers to make contributions monthly.

    SuperStream standard – contributions

    The SuperStream standard requires an employer to send – and a fund to accept – contributions in a specified electronic format with a minimum data set and an agreed set of identifiers (for example a tax file number for each member).

    Both data and money must be sent electronically and linked by a payment reference number to enable rapid straight-through processing by the receiving fund into a member’s account.

    Some alternative electronic methods are allowed under the standard (these are referred in the reporting of this data series as Channel B). These include pre-existing electronic portals operated by some funds which must meet certain minimum operational standards to be considered compliant.

    Non-conforming contributions

    Non-conforming contributions refer to a mix of paper-based, electronic and hybrid processes which don't satisfy the requirements of the SuperStream standard. These are often referred to as Channel C contributions although they are not a uniform grouping.

    For example, contribution information may be forwarded by an employer on a form by mail with a cheque, some components of data and money may be electronic (for example a BPAY payment), or a digital channel may be in use but falls short of the minimum requirements under the standard.

    Typically these types of contributions add cost, time delays, errors or complexity to the processing pipeline with adverse longer-term effects on members. The SuperStream standard aims to reduce contributions coming through these channels to as close to zero as possible.

    Note: This report does not include personal contributions made by members in their own right.

    RSEs and YTD reporting

    Some RSEs operate with non-standard financial years, meaning that any data reported by these entities on a year-to-date (YTD) basis will not be in line with the rest of the reporting population.

    For example, in the March quarter most entities will be reporting their combined first, second and third quarter results on an YTD basis. Entities with a December year end will be starting a new financial year and will only report the current quarter results.

    To avoid confusion in interpreting the data series, we've relied on discrete quarterly results for each entity and verified that these reconcile with respective YTD reports. A cumulative YTD and annual view has been built from these quarterly results.

    Note: All figures are rounded to the nearest decimal point. Prior quarter figures are revised in later quarters where reporting errors are uncovered or entities have resubmitted data. These refinements are unlikely to have a material impact on the overall picture.

    Key findings

    The overall rate of employer contributions complying with the SuperStream standard remains high.

    By the end of the March quarter 2019, over 97.5% of all employer contributions were being received electronically and in conformance with the SuperStream standard (includes the combined impact of Channel A and B volumes) a slight decrease from the previous December quarter which was 97.7%, however there was a lower volume of transactions in this quarter.

    When exempt funds are removed from the reporting data, the conformance rate is even higher at 97.7% which remains steady when compared to the previous quarter.

    Table 1: Channel A conforming contribution transactions – quarterly, September 2015 to March 2019

    Channel A quarterly contribution transactions

    Volumes (m)

    % of total

    September quarter 2015

    12.4

    39.7%

    December quarter 2015

    16.2

    49.8%

    March quarter 2016

    18.1

    57.2%

    June quarter 2016

    20.1

    57.9%

    September quarter 2016

    19.4

    60.2%

    December quarter 2016

    21.7

    63.7%

    March quarter 2017

    22.1

    67.5%

    June quarter 2017

    25.8

    71.8%

    September quarter 2017

    24.3

    74.6%

    December quarter 2017

    26.1

    75.0%

    March quarter 2018

    25.6

    75.8%

    June quarter 2018

    28.2

    75.6%

    September quarter 2018

    26.8

    79.1%

    December quarter 2018

    28.7

    77.1%

    March quarter 2019

    28.2

    78.8%

    Total for the quarters in this period

    343.6

    67.3%

    Table 2: Channel B conforming contribution transactions – quarterly, September 2015 to March 2019

    Channel B quarterly contribution transactions

    Volumes (m)

    % of total

    September quarter 2015

    12.3

    39.2%

    December quarter 2015

    11.3

    34.6%

    March quarter 2016

    9.9

    31.4%

    June quarter 2016

    11.0

    31.5%

    September quarter 2016

    10.3

    32.1%

    December quarter 2016

    10.0

    29.3%

    March quarter 2017

    8.6

    26.1%

    June quarter 2017

    7.9

    21.9%

    September quarter 2017

    6.4

    19.7%

    December quarter 2017

    6.8

    19.5%

    March quarter 2018

    6.4

    19.1%

    June quarter 2018

    8.1

    21.6%

    September quarter 2018

    6.2

    18.2%

    December quarter 2018

    7.7

    20.6%

    March quarter 2019

    6.7

    18.8%

    Total for the quarters in this period

    129.5

    25.4%

    Table 3: Channel C (non-conforming) contribution transactions – quarterly, September 2015 to March 2019

    Channel C (non-conforming) quarterly contribution transactions

    Volumes (m)

    % of total

    September quarter 2015

    6.6

    21.1%

    December quarter 2015

    5.1

    15.5%

    March quarter 2016

    3.6

    11.3%

    June quarter 2016

    3.7

    10.6%

    September quarter 2016

    2.5

    7.7%

    December quarter 2016

    2.4

    6.9%

    March quarter 2017

    2.1

    6.3%

    June quarter 2017

    2.3

    6.3%

    September quarter 2017

    1.8

    5.6%

    December quarter 2017

    1.9

    5.5%

    March quarter 2018

    1.7

    5.1%

    June quarter 2018

    1.0

    2.7%

    September quarter 2018

    0.9

    2.7%

    December quarter 2018

    0.8

    2.3%

    March quarter 2019

    0.9

    2.5%

    Total for the quarters in this period

    37.3

    7.3%

    Table 4: Total quarterly contribution transactions – September 2015 to March 2019

    Total quarterly contribution transactions for all channels

    Volumes (m)

    % of total

    September quarter 2015

    31.4

    100%

    December quarter 2015

    32.6

    100%

    March quarter 2016

    31.6

    100%

    June quarter 2016

    34.8

    100%

    September quarter 2016

    32.2

    100%

    December quarter 2016

    34.0

    100%

    March quarter 2017

    32.8

    100%

    June quarter 2017

    35.9

    100%

    September quarter 2017

    32.6

    100%

    December quarter 2017

    34.8

    100%

    March quarter 2018

    33.7

    100%

    June quarter 2018

    37.3

    100%

    September quarter 2018

    33.9

    100%

    December quarter 2018

    37.2

    100%

    March quarter 2019

    35.8

    100%

    Total for the quarters in this period

    510.4

    100%

    Note: All figures are rounded to the nearest decimal point. Prior quarter figures are revised in later quarters where reporting errors are uncovered and data is resubmitted by entities. However these refinements are unlikely to have a material impact on the overall picture.

    Figure 1: Contribution transactions by channel – quarterly trend, September 2015 to March 2019.

    Figure 1 shows Channel A with a steady increase of transactions from September 2015 to March 2019. There is a steady decline of Channel B transactions from September 2015 to March 2018 then a slight increase to June 2018 then decreased slightly in September 2018 ,  increased again in December 2018 and decreased in March 2019. Channel C has a decrease from September 2015 to September 2016 and then no change to March 2018. A further decrease is visible from March 2018 to June 2018. No change from September, December 2018 and no change to March 2019.

    Channel volumes

    Together all ‘conforming’ transactions represent a combined 97.5% of volumes in the March quarter 2019. Channel A transactions increased slightly to 78.8% in the March quarter compared to the previous quarter of 77.1%. Channel B transactions decreased during the March quarter to18.8% compared to 20.6% in the previous quarter (noting there are a lower number of overall transactions in this quarter compared to the previous quarter).

    Non-conforming contributions in Channel C (including exempt funds) as a percentage of total transactions increased slightly to 2.5% compared to the previous quarter of 2.3%. When exempt funds are excluded non-conforming contributions in Channel C transactions are lower and remain steady at approximately 2.3%.

    Figure 2: Contribution transactions (complying and non-complying) – quarterly trend, September 2015 to March 2019.

     The Figure 2 image is a bar chart showing quarterly trends of contribution transactions from September 2015 to March 2019. It shows a decrease in non-conforming channels from September 2015 to Mar 2019. Slight increase from December 2018. Total conforming channels shows a fluctuating increase from 78.9% in September 2015 to 97.5 % in March 2019. All the details available are as set out in Tables 1-3 above.

    Costs of contribution processing

    The costs of contribution processing amounted to approximately $33.4 million over the March quarter 2019.

    The total value translates into an average cost of 93 cents per contribution processed across the whole sector for the March quarter, indicating a slight increase from the previous quarter and noting there are a lower number of transactions in this quarter when compared to the previous quarter.

    Table 5: Cost movements – quarterly, September 2015 to September 2016

    Cost movements per quarter

    Total volumes (m)

    Total cost ($m)

    Unit cost ($)

    Quarterly Trend

    September quarter 2015

    31.4

    40.8

    1.30

    n/a

    December quarter 2015

    32.6

    39.6

    1.22

    -6.5%

    March quarter 2016

    31.6

    38.7

    1.23

    0.8%

    June quarter 2016

    34.8

    38.7

    1.11

    -9.4%

    September quarter 2016

    32.2

    37.0

    1.15

    3.3%

    Table 6: Cost movements – quarterly, December 2016 to March 2019

    Cost movements per quarter

    Total volumes (m)

    Total cost ($m)

    Unit cost ($)

    Quarterly Trend

    December quarter 2016

    34.0

    37.0

    1.09

    -5.4%

    March quarter 2017

    32.8

    35.7

    1.09

    0. 2%

    June quarter 2017

    35.9

    34.5

    0.96

    -11. 9%

    September quarter 2017

    32.6

    34.7

    1.06

    10. 9%

    December quarter 2017

    34.8

    34.9

    1.00

    -5.9%

    March quarter 2018

    33.7

    34.4

    1.02

    1.8%

    June quarter 2018

    37.3

    33.9

    0.91

    -10. 8%

    September quarter 2018

    33.9

    34.2

    1.01

    10. 9%

    December quarter 2018

    37.2

    33.8

    0.91

    -9.8%

    March quarter 2019

    35.8

    33.4

    0.93

    2.4%

    Note: Data has been rounded to the nearest decimal point.

    See also:

      Last modified: 29 Aug 2019QC 56074